South American countries began to sell oil below the cost of production

South American countries began to sell oil below the cost of production

22 January, 2016 11:25

Baku. 22 January. REPORT.AZ/ The fall in world oil prices led Venezuela, Colombia and Ecuador to the need to sell their oil at a price below the cost of its production, Report informs referring to Reuters.

Venezuelan crude oil DCO sold at 15 USD per barrel, a barrel of Colombian Vasconia costs less than 21 USD.

According to the latest Venezuelan state oil company PDVSA, the production cost per barrel is 18 USD here. In Colombia, this figure ranged from 20 to 22 dollars in the third quarter of 2015.

As previously stated by President of Ecuador, Rafael Correa, Ecuador also sells its oil to below the cost of production.

Venezuela is among the top 10 largest exporters and covers about 3.7% of the market, Colombia - 1.8%, Ecuador - less than 1%.

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